PlayStation is set to lay off around 900 employees worldwide, marking the latest workforce reduction in the video game industry’s taxing 2024. The severance is to impact PlayStation Studios across all SIE regions, including the closure of the one based in London.
This marks the most recent blow in a challenging 2024 for the video game industry, which witnessed other major players and industry giants significantly downsizing their workforce earlier in the year. Notable names such as Riot Games and Microsoft-Blizzard were among those navigating through the difficult terrain of layoffs.
The President and CEO of Sony Interactive Entertainment, Jim Ryan, explained the “extremely hard decision” comes from the gaming industry’s transformation, emphasizing the need to position the business for future challenges. The CEO described the necessity to ensure the continued delivery of top-notch gaming experiences to the community, resulting in a reevaluation of the company’s workforce.
Despite laying off 8 percent of the company’s employees worldwide, in a company-wide communication, Ryan told the employees the “challenging times” are “not indicative of a lack of strength” of the company, brand, or overall gaming industry.
The internal mail further detailed the company’s reasons behind the move, including cultivating long-term sustainability and creating optimal experiences for the gaming community. As part of the strategic decision-making process, Ryan underscored the necessity of this restructuring in response to the evolving economic landscape and shifts in the gaming industry’s development, distribution, and product launch dynamics.
Acknowledging the difficulty of receiving such news for all employees, the internal communication outlined support for those who will be leaving the company, including severance benefits.
